Natural Gas closed the trading session with a 4.15% gain, and this is the most XNGUSD had made in a single session since February 2021; the price broke a resistance level at $3.193 and currently trades at $3.285.
The commodity will likely see a retracement in the reopening of the sessions as the relative strength index has entered an overbought status. The current RSI is at 74%; traders will start reacting and closing their long positions and possibly open shorts.
The Bollinger bands are opening aggressively, but the price trades above the upper band, suggesting that the price is relatively high.
The expected pullback could bring the price to the $3.13 level in the short term, where it would face a support level at the 23.6% Fibonacci Retracement. Our parabolic SAR suggests that the uptrend would continue, but we believe that this is not likely to happen as our other indicators tell us that the price is too high; there could be a price correction soon.
The overall trend continues to be upwards for the medium term. Once the RSI exits the overbought status, the price could continue to move up.
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